Narrow search
Showing 1 - 10 of 6,962
Cover Image
Growth and Welfare in a Small Open Economy
Grossman, Gene M. - 2010
We construct a model of growth based on endogenous technological change in a small, open economy. Entrepreneurs develop new intermediate products whenever the present value of potential profits exceeds the cost of R&D. Diversity of intermediates contributes to total factor productivity in the...
Persistent link: https://www.econbiz.de/10013139328
Cover Image
Taxation and Endogenous Growth in Open Economies
Roubini, Nouriel; Milesi-Ferretti, Gian Maria - 2021
This paper examines the effects of taxation of human capital, physical capital and foreign assets in a multi-sector model of endogenous growth. It is shown that in general the growth rate is reduced by taxes on capital and labor (human capital) income. When the government faces no borrowing...
Persistent link: https://www.econbiz.de/10013229831
Cover Image
Incremental Trade and Endogenous Growth : A Q-Theory Approach
Baldwin, Richard E.; Forslid, Rikard - 2021
Most trade-and-growth studies focus on the growth effects of autarky-to-free-trade changes, rather than those of incremental liberalizations. This paper characterizes how the strength and sign of openness-and-growth links depend upon the nature and level of trade barriers. For most types of...
Persistent link: https://www.econbiz.de/10013212892
Cover Image
Comparative Advantage and Optimal Trade Policy
Costinot, Arnaud - 2013
The theory of comparative advantage is at the core of neoclassical trade theory. Yet we know little about its …
Persistent link: https://www.econbiz.de/10013071911
Cover Image
Trade, Diffusion and the Gains from Openness
Rodríguez-Clare, Andrés - 2012
Building on Eaton and Kortum's (2002) model of Ricardian trade, Alvarez and Lucas (2005) calculate that a small country representing 1% of the world's GDP experiences a gain of 41% as it goes from autarky to frictionless trade with the rest of the world. But the gains from openness, which...
Persistent link: https://www.econbiz.de/10012755278
Cover Image
The Welfare Effects of a Capital Income Tax in an Open Economy
Hartman, David G. - 2021
International capital mobility has typically been ignored in discussions of the welfare effects of the capital income tax. In the a typical analysis which does consider the open economy it is recognized that highly-elastic capital flows could significantly alter the usual conclusions. While...
Persistent link: https://www.econbiz.de/10013236725
Cover Image
Excess Capital Flows and the Burden of Inflation in Open Economies
Desai, Mihir A.; Hines Jr., James R. - 2021
This paper estimates the efficiency consequences of interactions between nominal tax systems and inflation in open economies. Domestic inflation changes after-tax real interest rates at home and abroad, thereby stimulating international capital movement and influencing domestic and foreign tax...
Persistent link: https://www.econbiz.de/10013217933
Cover Image
The Cost of Business Cycles Under Endogenous Growth
Barlevy, Gadi - 2021
In his famous monograph, Lucas (1987) put forth an argument that the welfare gains from reducing the volatility of aggregate consumption are negligible. Subsequent work that revisited Lucas' calculation continued to find only small benefits from reducing the volatility of consumption, further...
Persistent link: https://www.econbiz.de/10013210618
Cover Image
Globalization and Emerging Markets : With or Without Crash?
Martin, Philippe; Rey, Hélène - 2021
This paper develops a theory of financial crisis based on the demand side of the economy. We analyze the impact of … income in the emerging market and in the industrialized country. Whereas trade globalization always has a positive effect on … the emerging market, financial globalization may not, especially when trade costs are high. For intermediate levels of …
Persistent link: https://www.econbiz.de/10013218441
Cover Image
International Financial Integration and Crisis Contagion
Devereux, Michael B. - 2014
International financial integration helps to diversify risk but also may increase the trans- mission of crises across countries. We provide a quantitative analysis of this trade-off in a two-country general equilibrium model with endogenous portfolio choice and collateral con- straints....
Persistent link: https://www.econbiz.de/10013046603